Q2 2021 Thermogenesis Holdings Inc Earnings Call
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Good day and welcome to the Thermo Genesis Holdings Conference call and webcast to review financial and operating results for the second quarter ended June 32021, as a reminder, all participants will be in the listen only mode.
There will be an opportunity to ask questions at the end of todays presentation.
If you'd like to ask a question. Please press Star then one on your phone if you wish to withdraw your question. Please press Star then two if you wish.
You should need assistance during the conference call. Please signal an operator by pressing Star then zero as a reminder, this conference call is being recorded.
I would now like to turn the conference over to our host Paula Schwartz of Rx Communications. Please go ahead.
Thank you operator. This conference call contains forward looking statements within the meaning of the federal Securities laws. The company's actual results may differ materially from those projected in the forward looking statements additional information.
Concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained in the company's periodic reports filed with the Securities and Exchange Commission.
The information presented today is time sensitive and is accurate only as of the date of this call August 12, 2021, if any portion of this call is being rebroadcast retransmitted or redistributed at a later date thermogenesis will not be reviewing or updating this material participating on today's call is Jeff couple Chief Financial Officer, I'd like to now turn.
The call over to Jeff. Please go ahead.
Thank you Paula and thank you to everyone for joining the call. This afternoon.
For more than three decades, thermogenesis has proven its ability to pioneer the development and production of a long list of cutting edge automated technologies and products for the cell banking and cell therapy industries.
Ellen gene therapies are poised to continue to revolutionize many areas of medicine.
And thermogenesis intends to remain a leader in the development and commercialization of automated cell processing technologies that provide more efficient higher quality and cost effective manufacturing options to bring these therapies to clinics and patients in need.
Todays drug developers must address the key challenge how to manufacture the future cell and gene therapies at a commercial scale well.
Making them economically feasible.
We believe our proprietary automated car T Express platform.
Revolutionize cell processing and reduce overall cost.
Therefore, we are committed to transitioning thermogenesis from a device only company to a cell manufacturing service provider or C. D. M O.
For the global cell and gene therapy market.
We hope to update you soon with more information on this exciting transition.
Now I'd like to share the key financial results from the second quarter.
Net revenues for the quarter ended June 30th 'twenty, 'twenty, one or 2.2 million matching revenues for the quarter ended June 32020.
The quarter ended June 30th 2021 saw XP sales increased by 400000 and buy archives sales increased by 100000 as compared to 2020.
We believe this is a positive sign illustrating that cordblood revenues may be starting to return to pre pandemic levels.
The company does not have industry specific data at this time regarding the number of cord blood units sold globally X P. Disposable sales increased by approximately 150 cases in the second quarter of 2021.
The increased demand for X P backs it appears to imply the global cord blood unit stored are beginning to pick up.
Gross profit for the quarter ended June 32021 was $1 million or <unk>, 45% of net revenue consists.
Consistent with the company's standard gross margin and driven by the XP disposable and bio archive sales.
Selling general and administrative expenses were $3.5 million for the quarter ended June 32021, as compared to $2 million for the quarter ended June 32020, an increase of $1.5 million the.
The increase was driven by stock compensation expense, which rose by approximately $1.6 million.
Primarily due to the accelerated expense for certain options that were surrendered in the quarter ended June 32021.
For the quarter ended June 30 of 2021, the company reported a basic and diluted comprehensive loss attributable to common stockholders of $4.5 million or <unk> 38 per share.
Based on $11.9 million weighted average shares outstanding this.
This compares to a basic and diluted comprehensive net loss of $6.4 million.
Or a $1 two per share based on six 3 million weighted average shares outstanding for the quarter ended June 32020.
In addition to the results reported under U S GAAP.
Company also uses a non-GAAP measure adjusted EBITDA to evaluate operating performance and to facilitate the comparison of our historical results and trends.
To determine our operational cash flow.
Adjusted EBITDA loss for the quarter ended June 32021 was 900000 as compared to a loss of $4.7 million for the quarter ended June 32020, an increase of $3.8 million.
At June 30th 2021, the company had cash and cash equivalents totaling $8.7 million.
Compared with $7.2 million at December 31, 2020.
Working capital was $4.2 million at June 32021, as compared to $9.2 million at December 31.2020.
This concludes our prepared remarks, so now I'd like to open the call for your questions operator.
We will now begin the question and answer session.
To ask a question you May press Star then one on your telephone keypad.
If you were using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Sean Lee with H C. Wainwright. Please.
Please go ahead.
Oh, good afternoon, Jeff and thanks for taking my question.
It's encouraging to see some of the cord blood revenue started to do we trend this quarter after the <unk>.
And then Mike I was just wondering how long do you think this recovery would last and when do you think you're getting back to a more normal type of business level on the cord blood front.
Thank you Sean for the question.
It all kind of depends on you know where things go from here regarding the Delta variant and the virus in general.
Everything you know recut recovers in.
It continues to recover the way it had been the previous few months I would anticipate that by 2020, we would be back to pre pandemic levels. However, if.
The relative Delta variant and we end up with more shut downs or other type of.
Restrictions then that could derail some of the progress we've seen in the last couple of months.
Yeah.
Great.
Regarding the transitioning to a CDN provider.
I know you mentioned your guidance would be with even more detail assumes what can work with.
Timeline that we expect on that is that something that's <unk>.
Six months 12 months out or two years out.
No it's definitely more short term than long term.
You know we would like to have it definitely will have more information on this.
In the third quarter.
I see.
Forward to that then.
And finally just.
What are some of the other maybe carelessly inflection points that investors can look forward to over the next six to 12 months.
Well I think that I think the main one is really the transition to being a C. D M O.
So manufacturing provider I mean, that's the that's the key change that were kedar.
Key direction that we're moving the company in and that's where we see significant opportunities.
For the company to grow.
Future.
I see so thanks, though.
Alright, Thanks, Sean.
This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks.
Thank you operator, we look forward to updating you on our progress in the third quarter. Thank you to everyone who participated today and for your interest in Thermogenesis Holdings.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
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